Oil Prices Soar on US-Iran Conflict, Supply Disruptions Loom

Oil prices surged as tensions in the Middle East rose following renewed fighting between the US and Iran. The conflict has brought back concerns about supply disruptions from key crude-producing regions, driving up prices of Brent crude futures to $91.05 a barrel and U.S. West Texas Intermediate (WTI) to $86.59.

US President Donald Trump's threat of further strikes against Iran on Monday escalated tensions in the region, prompting analysts to warn of potential damage to energy infrastructure around the Gulf and increased uncertainty for shipping through the Strait of Hormuz.

The number of visible commodity vessels transiting the Strait of Hormuz dropped to five per day over the weekend, highlighting the risks that remain to shipping and oil supply. Efforts by mediators including Qatar and Oman to broker a deal to reopen the waterway have so far failed to gain traction.